ifkad articles

The impact of management consulting on organizational performance: a structural model approach

Sami Kajalo, Sampo Tukiainen, Jukka I. Mattila

The purpose of this paper is to examine how management consulting is linked to the performance of the firm. We claim that the acquiring consulting services in order to gain expertise or Best Practices improves the customer’s decision and finally leads to better organizational performance. The theoretical model consisted of six theoretical constructs about the motivations to acquire consulting, the impact of consulting on decision making, and the impact of consulting on performance. Four hypotheses about the linkages between these constructs were formed. For the empirical analysis a data (N=1,127) was collected among managers who acquire services of management consultants. The analysis followed the two-step procedure where two types of assessment were conducted, measurement model assessment and structural model assessment. The measurement model assessment was conducted using Confirmatory Factor Analysis (CFA), and the structural model assessment using Structural Equation Modeling (SEM). This study shows how purchasing expertise and best practices are connected to organizational performance via improved decision-making. The results widen the view on client-consultant relationship in existing theory on knowledge intensive client work (cf. Sturdy et al., 2009; Todorova, 2004; Bitner et al., 1997) and especially in the reciprocal processes of consulting service delivery (cf. Nikolova and Devinney 2012). The proposed results of the analysis provides a framework, which allows the clients of management consultants better design, brief and guide the consultancy processes. From the consultant’s perspective, the results of this study contribute to designing facilitation methods, which strengthen the need for emphasizing the cooperation with the client.

IN: Proceedings IFKAD 2016 – Towards a New Architecture of Knowledge: Big Data, Culture and Creativity
PP: 442-454